appropriate risk management policies and procedures to keep risk levels within defined limits as well as maintaining adequate human and technological resources. EWRM implementation is also supported by the existence of a Risk Management Unit that acts independently from the risk-taking units.
The process of risk identification and measurement as well as the types of risks faced by the Bank are further explained in the Risk Management section of this Annual Report.
RISK MANAGEMENT UNIT
RISK MANAGEMENT ORGANIZATION STRUCTURE The Risk Management (SKMR) function in the Bank is conducted by the Risk Management Unit (RMU), which is led by Risk Management Director. The Bank’s Risk Management Unit structure is further explained in the Risk Management section in this Annual Report.
PROFILES OF RISK MANAGEMENT UNIT HEAD The legal basis and mechanism of appointment and dismissal of the Head of Risk Management Unit held by Risk Management Director as disclosed in the Board of Directors’ discussion which is part of the Corporate Governance Report Section in this Annual Report.
VERA HANDAJANI RISK MANAGEMENT DIRECTOR
Complete profile presented in the Board of Directors’
Profiles
KOEI HWEI LIEN
HEAD OF RETAIL CREDIT RISK MANAGEMENT
Complete profile presented in the Senior Executive’s Profiles JULIUS WIANTARA TJHIOE
HEAD OF OPERATIONAL RISK MANAGEMENT (ORM) Complete profile presented in the Senior Executive’s Profiles DIVA MAHDI
HEAD OF MARKET RISK MANAGEMENT & MODEL VALIDATION Complete profile presented in the Senior Executive’s Profiles
YULIUS SETIAWAN
HEAD OF RISK ANALYTICS & INFRASTRUTURE
Complete profile presented in the Senior Executive’s Profiles WAHDINIE MUSMAR
HEAD OF NON-RETAIL CREDIT POLICY AND ASSURANCE TESTING Complete profile presented in the Senior Executive’s Profiles SANDI MARUTO
HEAD OF ALM RISK
Complete profile presented in the Senior Executive’s Profiles
TJAHJADI YAPETER
HEAD OF WHOLESALE BANKING CREDIT
Complete profile presented in the Senior Executive’s Profiles HENRY SAWALI
HEAD OF COMMERCIAL BANKING AND SME CREDIT Complete profile presented in the Senior Executive’s Profiles HADI SOEDARSO
HEAD OF CREDIT RELATED RCU
Complete profile presented in the Senior Executive’s Profiles
CERTIFICATIONS OF RISK MANAGEMENT UNIT HEAD
Name Certification
Vera Handajani
Risk Management Director Certification is presented in the Board of Directors’ Profiles Koei Hwei Lien
Head of Retail Credit Risk Management Level 4 Risk Management Certification Julius Wiantara Tjhioe
Head of Operational Risk Management (ORM) Level 4 Risk Management Certification Diva Mahdi
Head of Market Risk Management & Model Validation Level 4 Risk Management Certification Yulius Setiawan
Head of Risk Analytics & Infrastructure - Certified Financial Risk Manager (FRM)
- Certification in Risk Management Assurance (CRMA) - Certified Internal Auditor (CIA)
- Level 4 Risk Management Certification Wahdinie Musmar
Head of Non-Retail Credit Policy and Assurance Testing Level 4 Risk Management Certification Sandi Maruto
Head of ALM Risk - Certified Financial Risk Manager (FRM)
- Level 4 Risk Management Certification Tjahjadi Yapeter
Head of Wholesale Banking Credit Level 4 Risk Management Certification Henry Sawali
Head of Commercial Banking and SME Credit - Level 4 Risk Management Certification - Senior Credit Workshop – Omega Certification - Minimizing Problem Loans - Omega Certification - Credit Risk Module Certification
- Foreign Exchange & Treasury Certification Hadi Soedarso
Head of Credit Related RCU - Level 4 Risk Management Certification - Level 1 Compliance Certification
- Diploma in Credit from The Chartered Institute of Bankers in Scotland, in association with Omega Performance.
- Omega Certification & Certified Trainer for Omega Training module : Business Lending Fundamental (BLF), Financial Accounting for Lenders (FAL), Commercial Loan to Business (CLB) & Minimizing Problem Loan (MPL).
- Basic Knowledge in Pension Funds Certification issued by Pension Fund Professionals Certification Institute (MUDP)
RISK MANAGEMENT UNIT DUTIES AND RESPONSIBILITY
1. Monitor risk management strategy implementation recommended by the Risk Management Committee and approved by the Board of Directors.
2. Provide input to the Board of Directors, on developing Risk Management policies.
3. Monitor position or overall risk exposure (composite), for each risk type, and each functional activity type.
4. Perform stress testing to determine the impact of significant changes in external performance, liquidity and capital conditions.
5. Conduct periodic reviews of the Risk Management process.
6. Review proposed new activities and/or products proposed or developed by particular unit. The review is focused primarily on aspects of the Bank’s ability to conduct the new activities and/or products, including the systems and procedures used and their impact on overall risk exposure.
7. Provide recommendations related to the amount or maximum risk exposure that the Bank can have to the RTU and to the Risk Management Committee, in accordance with their respective authorities.
8. Evaluate model accuracy and validity of the data used to measure risk in the event that the Bank uses the model for internal purposes.
9. Prepare and submit risk profile reports to the Board of Directors, the Risk Management Committee and the Sharia Supervisory Board (for UUS Risk Profiles) on a regular basis or at least quarterly.
10. Monitor risk management policies implementation including developing procedures for risk identification, measurement, monitoring and control methods.
11. Review proposed new strategic business lines and may have a significant effect on Financial Conglomerate Risk exposure.
12. Conduct independent studies in the credit underwriting process including post-mortem reviews.
13. Carry out duties as an Integrated Risk Management Work Unit in the context of implementing integrated Risk Management.
14. Providing input to the Integrated Risk Management Committee, in order to formulate and improve Integrated Risk Management Policies.
15. Prepare and submit Integrated Risk Profile reports regularly to the Integrated Risk Management Committee.
16. Provide information to the Integrated Risk Management Committee on issues that need to be followed up regarding the results of the evaluation of the application of Integrated Risk Management.
COMPETENCY DEVELOPMENT PROGRAM AND PROFESSIONAL CERTIFICATION FOR RISK MANAGEMENT UNIT MEMBERS
In 2020, the Risk Management Unit (RMU) comprised of 308 employees. A variety of training programs have been organized in support of competence development of RMU personnel, including:
No Name of Training Program/Workshop/Conferences/
Seminar Organizer Date & Venue
1 PROJECT TRANSFORMATION LEADERSHIP Deloitte & Electric 8 12 & 20 February 2020 Jakarta
2 Anti Fraud Awareness CIMB Niaga 29 February, 12 August,
18 September, 16 October, 4 November
Online 3 Mastering & Enhancing Presentation With Infographic Executrain 17 June 2020
Online
4 Design Thinking CIAS (Corporate Innovation Asia) 8 July 2020
Online
5 Centre of Applied Data Science (CADS) Level 4 CADS 9 September 2020
Online 6 Digital-Data-Design as Key Diffrentiator VP AdTech and PromoTech Gojek 30 September 2020
Online
7 Agile Scrum Foundation For Risk Management Trainocate 7, 23 October & 9 November 2020 Online
8 Advanced Corporate Credit - Warning Signals Fitch Learning 2 November 2020
Online
9 Certified Python Programmer for Data Science I Train 30 November 2020
Online 10 Problem Credits: Early Warning Signs and Restructuring Moody’s Analytics 8 December 2020
Online
RISK MANAGEMENT CERTIFICATION
The number of Bank personnel who obtained Risk Management Certification (RMC) is presented in the following table:
Level Mandatory RMC Total personnel with RMC
(mandatory & non-mandatory)
Passed Not Yet Passed % Passed %
1 1,675 46 97% 2,591 155%
2 585 29 95% 1,200 205%
3 257 9 96% 419 163%
4 98 1 99% 114 116%
5 8 0 100% 10 125%
Total 2,623 85 96% 4,334 165%